Abu Dhabi Ports Co (ADPC) signed a memorandum of understanding (MoU) at the weekend with polyolefins producers Borealisand the Abu Dhabi Investment Council (ADIC) on behalf of Chemaweyaat.

The chemicals initiative is being developed by ADIC and International Petroleum Investment Co (IPIC) to speed up the emirate’s involvement in the chemicals industry.

Chemaweeyaat 1 is expected to be complete by 2013, ADPC said.

"The location of this large scale petrochemical complex is a major milestone for the development of the industrial cluster at the Khalifa Industrial Zone,” ADPC CEO Ahmed al-Calily said.

“Chemaweyaat as an anchor tenant will attract additional investments from all parts of the supply chain and will create a viable chemical and petrochemical cluster,” he added.

"This will deliver valuable collective benefits to the port and the industrial zone."

“We also look forward to attracting further downstream industries to Taweelah through the broad range of chemical and petrochemical products to be produced there,” said Chemaweyaat chairman Mohamed al-Azdi.

Khalifa port and industrial zone, located between the cities of ?xml:namespace>Abu Dhabi and Dubai, includes the construction of a world-scale container and industrial port, and the development of more than 100 square kilometres of industrial, logistics, commercial, educational and residential special economic and free zones.

ADPC awarded contracts to begin the construction of the new port, set to be operational by the end of 2010, and two major earthworks contracts for the Khalifa Industrial Zone, in the first quarter of this year.